9/29/2010 12:45:00 PM
SpiriTel consolidates ‘buy and build’ strategy
Increasing customer demand for unified comms solutions has created ideal market conditions for SpiriTel’s ‘buy and build’ strategy, according to SpiriTel chief executive Alastair Mills.
Since 2007, SpiriTel has followed a ‘buy and build’ strategy, which has seen it complete 12 acquisitions to date. In 2008, it expanded into mobile for the first time, buying b2b mobile dealer WN1 for just over £2m in 2008.
‘If you can’t provide a full solution, this is becoming a difficult place to be in. There are some excellent smaller companies out there that don’t have the capacity to do that so a lot of them are thinking that now is the right time to exit. For anyone with access to capital and an integration capability this is a very exciting market to be in right now,’ said Mills.
Mills said SpiriTel targets companies focused on one specific market.
‘I absolutely love one-trick ponies. I love those companies that are very strong in their area with a real depth of customer relations,’ he added.
The company has seen rapid growth. Starting with 17 staff in 2007, it now employs 175 personnel, with its mobile division expanding from 12
to 40 since 2008.
‘Mobile is a key growth area for us,’ said Mills. ‘We now have around 35,000 connections, making us one of the largest independent service providers.’
The Group’s customer base, which has risen 175% over two years to 4,200, and its fixed and mobile churn rates, which stand at 4% and 8% respectively, are also testament to the success of its dual strategy, he added.
Integrating each new acquisition has been fine tuned at SpiriTel, Mills said.
‘We have a track record for very efficient, rapid integration, with one of our mobile companies 90% integrated within 11 working days,’ he added.
The integration process also saw £1.6m of annual overheads shaved from the acquired businesses over the past 10 months.